BlackRock closes third co-investment fund on $630m

BlackRock Private Opportunities Fund III beat its $388m target and more than doubled the size of its predecessor.

BlackRock held a final close of BlackRock Private Opportunities Fund (POF) III, its third direct co-investment fund, on $630 million, the firm said in a statement.

According to PEI Research & Analytics, the firm raced past its initial target of $388 million.

The fund’s investors include public and private pension funds, insurers and foundations in North America and Europe, according to the firm. Alaska Permanent Fund committed $100 million, according to PEI Research & Analytics.

BlackRock’s 14 April filing with the US Securities and Exchange Commission said there are 118 investors in the fund. There are two additional SEC filings, one for POF III (Delaware) and another for POF III (Cayman), which said there are two and 33 investors in those vehicles, respectively.

The main filing also said POF III received its first commitment on 24 February 2014 and that Wilmington Trust Company, Wilmington Trust National Association, and Manufacturers and Traders Trust Company were advisors to the fund.

BlackRock said POF III will build a portfolio with diversification in geography, strategy and industry, and seek consolidation and roll-ups, corporate carve-outs, energy, special situations, growth opportunities in Asia and other emerging markets, family-owned and small-cap buyout and growth, and state-owned enterprises and privatisations.

“Today’s challenging market environment requires a more nuanced and thoughtful approach,” BlackRock Private Equity Partners managing director and global head Russell Steenberg said in the statement. “That’s why we’re looking to back strong management teams in all-weather businesses that can benefit from some sort of corporate change event but require support in transition, integration and operations to realise the full potential.”

POF III’s predecessor, POF II, fundraised in 2007 and closed on $255.3 million, according to PEI Research & Analytics.

BlackRock manages $114 billion in alternative investments.

A spokeswoman was not available to comment.